Union Minister Ashwini Vaishnaw announced the ‘Semicon 2.0’ vision to expand India's semiconductor design capabilities and scale commercial chip production [1].
The initiative marks a strategic shift toward securing the domestic supply chain for artificial intelligence and deep-tech innovation. By focusing on the tools used to create chips, India aims to reduce reliance on foreign technology and grow its digital economy [1, 2].
Vaishnaw said the new roadmap will prioritize chip design and the manufacturing of the equipment required to produce them [2]. This follows the first phase of the semiconductor mission, which has already seen two plants enter commercial production [2]. To support these efforts, the government approved an investment of ₹3,936 crore for two semiconductor units located in Gujarat [3].
The broader semiconductor mission operates with a total earmarked outlay of ₹76,000 crore [3]. This financial backing is paired with an educational push to create a skilled workforce. Vaishnaw said more than 300 universities across India are now teaching chip design [4].
India's role in the global market is currently concentrated in the design phase. Vaishnaw said India is now designing advanced semiconductor chips for global leaders like Nvidia and Intel [4]. However, he noted that the country is not yet at the same level as established hubs. He said comparing India with Taiwan and South Korea on semiconductors is not very accurate [5].
The Semicon 2.0 vision coincides with Prime Minister Narendra Modi completing 12 years in office [1]. The government intends for this phase to bridge the gap between design expertise and full-scale commercial manufacturing, a move intended to solidify India's position in the global electronics value chain [1, 2].
“Semicon 2.0 will focus on chip design and manufacturing equipment.”
The transition to Semicon 2.0 signals India's recognition that design talent alone is insufficient for technological sovereignty. By targeting manufacturing equipment and commercial scaling, India is attempting to move from a service-based provider for Western firms to a full-stack semiconductor power. While the gap with Taiwan and South Korea remains significant, the integration of university curricula with government funding suggests a long-term play to build a sustainable domestic ecosystem.
